US November Producer Price Index (PPI) came in at +3%. Expectation: +2.7%.
At the start of the week, the Consumer Price Index (CPI) was +2.7%.
ARE THE MARKETS FAKED SPRING?
INFLATION'S COLOR HAS CHANGED!
Producer Price Index (+3), above the Consumer Price Index (+2.7).
This indicates that production costs are still high and that this burden may be passed on to consumers over time.
EARLY RATE CUTS HAVE BECOME MORE DIFFICULT FOR THE FED.
CPI RELIEF HAD OCCURRED, BUT PPI BROKE THAT RELIEF.
CPI has fallen, and the room for immediate rate cuts has narrowed.
POWELL's tone may become more cautious and tighter.
STOCK MARKETS AND CRYPTO:
VOLATILITY IN RISK ASSETS IS EXPECTED IN THE SHORT TERM.
BECAUSE THE MARKET IS PRICING IN:
UNFORTUNATELY, INTEREST RATES MAY REMAIN HIGH FOR A LONGER PERIOD.
The Consumer Price Index is the indicator. The Producer Price Index is the real story. We cannot say inflation is over without the producer side cooling down...
SPOT INVESTORS SHOULD NOT PANIC, BUT BE CAREFUL WITH TERM TRANSACTIONS AND USE STOP-LOSS.
DESPITE ALL THESE DEVELOPMENTS, I BELIEVE WE WILL OVERCOME THIS PERIOD POSITIVELY BECAUSE SIGNIFICANT POSITIVE MOVES HAVE OCCURRED IN THE US CRYPTO SECTOR.
JUST BE CAREFUL DURING THIS INTERIM.
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Breaking News
US November Producer Price Index (PPI) came in at +3%.
Expectation: +2.7%.
At the start of the week, the Consumer Price Index (CPI) was +2.7%.
ARE THE MARKETS FAKED SPRING?
INFLATION'S COLOR HAS CHANGED!
Producer Price Index (+3), above the Consumer Price Index (+2.7).
This indicates that production costs are still high and that this burden may be passed on to consumers over time.
EARLY RATE CUTS HAVE BECOME MORE DIFFICULT FOR THE FED.
CPI RELIEF HAD OCCURRED, BUT PPI BROKE THAT RELIEF.
CPI has fallen, and the room for immediate rate cuts has narrowed.
POWELL's tone may become more cautious and tighter.
STOCK MARKETS AND CRYPTO:
VOLATILITY IN RISK ASSETS IS EXPECTED IN THE SHORT TERM.
BECAUSE THE MARKET IS PRICING IN:
UNFORTUNATELY, INTEREST RATES MAY REMAIN HIGH FOR A LONGER PERIOD.
The Consumer Price Index is the indicator.
The Producer Price Index is the real story.
We cannot say inflation is over without the producer side cooling down...
SPOT INVESTORS SHOULD NOT PANIC, BUT BE CAREFUL WITH TERM TRANSACTIONS AND USE STOP-LOSS.
DESPITE ALL THESE DEVELOPMENTS, I BELIEVE WE WILL OVERCOME THIS PERIOD POSITIVELY BECAUSE SIGNIFICANT POSITIVE MOVES HAVE OCCURRED IN THE US CRYPTO SECTOR.
JUST BE CAREFUL DURING THIS INTERIM.